Tata Motors intends to offer all Nano solutions under one roof. This means that the company not only consolidates its manufacturing plan for the car but also its sales strategy to make the car more commercially viable. Tata Motors Finance, wholly owned subsidiary of Tata Motors has joined the bandwagon of offering Nano booking loans. Tata Motors Finance stated that it is also offering loans to its customers for the booking amount at an interest rate of 12-13 percent with three year tenure.
Tata Motors does not intend to compete with the bank loan rates but focuses more on offering one-stop solution to its customers. Over the next 17 days, prospective buyers can buy application forms for Rs.300 each and apply with an upfront payment of around Rs.95,000 - or Rs.2,999, if they wish to get it financed, company officials said.
Bank loans for Nano are expected to be cheaper than the regular fare car finance. Nano financiers are planning discounted interest rates-- which are tipped to figure at 50 to 150 basis points (bps) lower than regular car loan rates. The Union Bank of India has decided to finance Nano at 9 percent interest rate which is nearly 100bps lower than UBIs card rate for auto loans.